Overview of Singapore Public Housing Story

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A division of

Overview of Singapore’s Public Housing

Mr Chionh Chye Khye
CLC Fellow

OVERVIEW

• Introduction & A Bit of History • Key Success Factors

Singapore:A City-State’s Challenges

5.40 Million

• Population of 5.535 mil • Land area of 719 km2 7,698 persons/km2 density

• Hi-rise hi-density living

Structure of Real Estate Market in Singapore

Housing Market

  • Public
  • Private

Home

Ownership

Rental Home

Ownership

Rental

Landed property, Condominium & ECs
1R / 2R / 3R / 4R / 5R / EF / Studio Apts

Primary Market

(HDB)

Secondary Market

(Resale)

Primary Market

Secondary Market

HISTORY: TURNING A CITY OF

SQUATTERS TO A HOME OWNING

SOCIETY

Housing Landscape: 1950s

City Fringe Squatters

Inner City Shophouse-cubicles

Rapid Population Growth Poor Housing Conditions Severe Housing Shortage

Rural Villages/Farms

SIT 1927 to 1959

The Vision

My primary occupation was to give every citizen a stake in the country and its future… if

every family owned its home, the

country would be more stable… I

believe this sense of ownership was

vital for our new society… ”

Mr. Lee Kuan Yew,

Prime Minister of Singapore

Housing & Development Board

Established in Feb 1960

9

“Home Ownership for the People” Scheme

1964: Home Ownership for the People Scheme

• Targeted at lower-middle and middle-income households • Intended to give Singaporeans a stake in the country • Public Balloting conducted to allocate flats to applicants

• Low-interest government loans available to those who were not able to

afford outright purchase

© 2016 Housing & Development Board

Residents in Public Housing

Population (‘000)

4,500

3.9 million

3.2 million

4,000 3,500

Estimated

3,000 2,500 2,000 1,500 1,000
500

Resident

Population

Resident population in Public Housing

82% (2015) 23% (1964)

Estimated Resident

Population living in HDB Flats

0

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

© 2016 Housing & Development Board

Public Housing Today

• Over 80% of Singapore’s resident population lives in

HDB flats
• 95% own their homes

Social Class Integration: Variety of Housing Options within a neighbourhood

High
Private Property

Exec Condo
3Gen/ Executive/
5-room
Financial

Ability
4-room

3-room
2-room Flexi
HDB Flats

Rental flats
Low

© 2016 Housing & Development Board

The Transformation

1980s
1960s

2000s
1950s

The Pinnacle@Duxton
Punggol Waterway Terrace

Key Success Factors

• Land allocation for HDB housing through Land Acquisition Act • Government funding to HDB for development and for mortgage loans to purchasers

• Government’s emphasis on home ownership & affordability

• Emphasis on community building

• Focus on estate maintenance and upgrading • Favourable economic environment: high growth, low unemployment, longterm appreciation of housing values

Land AcquisitionAct

• The Land Acquisition Act allowed the government to acquire 17,692 hectares of land between 1959 and 1984

• This represented 30% of Singapore’s total land area (excluding reclaimed

land)

• Half of this land was given to HDB for public housing

• Land acquisition was done relatively cheaply and quickly which in turn allowed

Public Housing to be developed with low land costs and at a very fast pace

Central Provident Fund (CPF)

• The CPF was set up in 1955 as a retirement scheme with contributions from both the employer and employee

• Government sells bonds to CPF Board and uses fund to

finance development of public housing and infrastructures

• In 1968 CPF savings was allowed to be used for the purchase of HDB flats

• In 1981 CPF savings was: allowed for the purchase of private residential properties in Singapore

Why Home Ownership?

Provides an asset & a

store of

Provides a stake in the country value

Key
Benefits

Encourages

better

maintenance

Promotes rootedness
& belonging

Builds strong

work ethics

© 2016 Housing & Development Board

Current Range of Housing Subsidies

Income up to $12,000

Income up to $14,000
Resale Flats

(market value)
Executive
Condominiums
New Flat
(market discount)

Family Grant

($10k - $30k)

Proximity Housing

Grant ($20k)*

Family Grant

($30k)

Additional CPF Housing Grant

($5k to $40k)

Special CPF
Housing Grant

+

($5k to $40k)
Concessionary

Concessionary loan

loan

* There is no income ceiling

© 2016 Housing & Development Board

Keeping Development Costs Low

Land Cost - Land Acquisition Act (LAA)

• 1966 LAA – enabled state to compulsorily acquire land for

public purpose at a reasonable price

Construction Cost

• HDB cut red tape, broke cartels, ended payment delays & corruption, ended over-specification, raised productivity, instituted open tender and fair contract practices

• HDB built brick, sand and granite quarries, award bulk

contracts for steel bars and cement

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    Index Abbott v Overstrand Municipality and 3 Boadu, D. 88 Others 6 Brazil 5, 25 acid by-products 154, 162–7 Brewer, W. 57 acidification 34, 49 Brisbane Voluntary Home Purchase administrative enforcement 88, 98 Scheme 122–3 afforestations 60, 64, 65 Bush, G.H.W. 20 Agreement on the Conservation of by-laws 88 African-Eurasian Migratory Byron Shire, Australia 123 Waterbirds (AEWA) 75–6, 82, 91–2, 98 California 52–3 Agreement on the Conservation of Canada 92, 94–7, 98 Cretaceans of the Black Sea, Carpenter, D.A. 64–5 Mediterranean Sea and contiguous catalytic converters 16, 28 Atlantic Area 48–9 catchment management regimes 124–5 air quality 148–9 cats 142 airborne lead 13–15, 16–17, 19 Central Provident Fund (CPF) 132, 138 Alm, A. 23 Housing Grants 139 Anthropocene 71–4 Chagos Marine Protected Area areas beyond national jurisdiction 41, Arbitration 44 44–5 changes in ecological character 80 Asselman, N.E.M. 113 options available under international Aub, J.C. 9 conventions 89–92, 98 Australia 2, 6 Charter of the Forest 3–4, 54–74 ecosystem-based approaches to CPR theory 57, 60–2, 69, 70–1 flood risk management 5, evolved norms 57–9, 68–9 116–27 first environmental statute 63–5 flood risk 100–1 for the Anthropocene 71–4 MPAs 52–3 as a human rights statute 57, 62–9 Auyuittuq National Park 94–7 children, lead poisoning in 13, 19, 21–2, 23, 24 Bangladesh 4 China 6, 26, 154–73 beach management units (BMUs) 92–4 Civil Procedure Law 160–1, 164, Bicchieri, G.
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